Invesco Real Estate is to develop a 261-bed purpose-built student accommodation (PBSA) asset in the northwest of England via a partnership with developer Alumno Group.

Set to complete in the third quarter of 2026, the development site in Manchester has been acquired on behalf of Invesco Real Estate Europe Fund III (Europe III), the manager’s third European value-add strategy.

The 50,000sqft property will comprise 207 cluster beds, of which 52 will be affordable, and 54 studios.

Rob Johnston, managing director, head of investments in UK & Nordics at Invesco Real Estate, said: “The UK’s PBSA market continues to offer strong investment opportunities, particularly in critically underserved cities such as Manchester.

“We are delighted to have secured this well-located site and look forward to working with Alumno to deliver a high-quality product to the market, which will ultimately create value for our investors.”

Kevin Grundy, managing director – fund management in Europe at Invesco Real Estate, said: “Market repricing and the temporary retreat of core capital have combined to open up a number of attractive opportunities around Europe in sectors with positive tailwinds such as PBSA.

“We expect Europe III to be active in this sector as well as others where the risk/return balance has moved in favour of value-add investors who are prepared to move with speed and conviction.”

Invesco Real Estate is to develop a 261-bed Purpose-Built Student Accommodation (PBSA) asset in Manchester in partnership with Alumno Group, a leading PBSA developer 4 July 2024

Source: Invesco Real Estate

Invesco Real Estate’s 261-bed PBSA asset in Manchester

Alumno’s founder and managing director David Campbell said it was a ”highlight for the company to be working on this exciting project, with such an established and well regarded global investment leader, such as Invesco Real Estate”.

He added: “We are looking forward to progressing the project with the Invesco team and delivering a first-class building, our second in Manchester.”

Europe III aims to capitalise on current short-term pricing opportunities as an attractive entry point to fundamental, long-term value creation, Invesco said.

The fund, which held its first close in the third quarter of 2023, targets up to €1bn.

Across 39 investments spanning six sectors in 10 countries, the firm has achieved a 35% gross internal rate of return and a 1.7x gross equity multiple from 21 realised investments, Invesco added.

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